ZURICH—
Credit Suisse Group AG
reiterated a rough outline for a potential bite out of profit, thanks to the recent surge of the Swiss franc, a swing in value that is expected to throttle much of Switzerland’s financial sector.

Zurich-based Credit Suisse, which operates a foreign-currency-trading business at its investment bank, added that it didn’t suffer “material” trading losses because of the abrupt change in the franc’s value that followed a surprise lifting of a cap on the value of the currency last week.

Last Thursday, the
Swiss National Bank
abruptly canceled its policy of capping the value of the franc at 1.20 to the euro, sending the value of the franc significantly higher relative to the euro and the dollar. The move is expected to affect the profitability of many Swiss banks, including Credit Suisse, which derive much of their income in euros and dollars.

More

On Wednesday, Credit Suisse reiterated that it remains about as sensitive to shifts in the value of the franc relative to the euro as it was last October, the time of its most recent earnings report. At that time, the bank said a 10% move in the franc relative to the euro could have shaved 180 million francs ($209 million) from its pretax profit for the first three quarters of last year. The bank noted Wednesday that, according to current exchange rates, the franc has fallen 20% below its average value relative to the euro last year.

Credit Suisse added that the actual impact on the bank’s profitability this year remains to be seen, and that the impact could be offset by unspecified “management actions.”

A spokeswoman for the bank declined to comment further.

On Monday, Credit Suisse posted a message on its website saying that its sensitivity to currency swings remained unchanged from the time of its October earnings report.

Credit Suisse added on Wednesday, however, that it didn’t suffer “any material trading losses” related to the recent volatility in foreign-exchange rates following the SNB’s move. The bank said it has “recorded positive trading results” in the period following the SNB’s announcement of the change in policy last week.

Credit Suisse has a foreign-currency-trading business that is relatively small compared with its Zurich-based rival
UBS AG
.

A UBS spokesman declined to comment. UBS hasn’t issued any guidance related to the possible impact of the strengthened franc on profit. However, last week analysts at Morgan Stanley suggested that UBS could see a 16% cut in its earnings per share thanks to the sudden change in currency value.

UBS is expected to release financial results for the fourth quarter on Feb. 10, while Credit Suisse is scheduled to report results on Feb. 12.

Credit Suisse shares have fallen nearly 17% since the Swiss central bank announced its change of policy on capping the franc last Thursday, while shares of UBS have fallen roughly 13%.

Julius Baer Group AG
, a Zurich-based bank focused on wealth management, said on Monday that it expected to be able to put unspecified measures in place to “defend” its profitability in the wake of the SNB decision.

However, Julius Baer and other private banks, which tend to cater to wealthy clients within Switzerland’s borders, are expected in some ways to take a heavier hit from the strengthening franc.

That is because much of their costs are denominated in francs, while their incomes come largely in euros or dollars. They also generally have less leeway to use the francs on their balance sheets to seek out potentially profitable investments.

Shares of Julius Baer have fallen more than 18% since the SNB announcement last Thursday, and the bank is expected to post financial results on Feb. 2.

Lombard Odier Group, a Geneva-based private bank with roots dating to the 18th century, will this week begin charging a 0.75% fee on cash deposits of more than 100,000 francs as a result of the SNB’s policy change.

The charge won’t apply to cash held in client portfolios actively managed by the bank, which is balanced out by holdings in other currencies and assets such as stocks.